Kia Motors Corp. made a jump of up to 14.5% after a local media report that Apple Inc. will invest 4 trillion won ($ 3.6 billion) as part of a collaboration with the South Korean automaker to manufacture electric vehicles.
The iPhone maker plans to start production with Kia and build Apple cars at the automaker’s facilities in Georgia, USA, DongA Ilbo reported, without mentioning anyone. The companies can sign an agreement on February 17 and intend to launch Apple cars in 2024, according to the newspaper, which said it had an initial goal of producing 100,000 cars a year.
A representative for the automaker in Seoul and an Apple representative in California declined to comment.
Apple reports considering expanding to vehicles have led to speculation about potential manufacturing partners. The tech giant’s car development work is still at an early stage, and the company will take at least half a decade to launch a standalone EV, people with knowledge of the efforts told Bloomberg News. This suggests that the company is in no hurry to make partnership decisions.
Last month, Hyundai Motor Co., a Kia affiliate, backed down from a statement that said it was in talks with Apple, revising it to say that only he had been contacted by potential partners for the development of autonomous EVs. The news pushed Hyundai’s stock up nearly 20% on the day. Kia’s shares are now at their highest level since 1997.
An Apple electric car would compete with Tesla Inc. and companies like startup Lucid Motors and China’s Nio Inc., as well as established manufacturers such as Daimler AG and Volkswagen AG. Opening a car factory can cost billions of dollars and take years, probably the reason why Apple is talking to potential partners.
Other technology companies looking to expand into automobiles have also sought partnerships. Taiwanese iPhone maker Foxconn Technology Group said last month that it is establishing a venture with a Chinese automaker Zhejiang Geely Holding Group Co. to provide production and consulting services to global automotive companies.
– With the help of Mark Gurman
(Updates with Kia’s reply in the third paragraph.)